A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

• A. Stock delivery cannot be restricted in a commercial agreement to lease.
• B. Should a delivery truck arrive during an emergency, the property manager must be available.
• C. The salesperson is responsible for negotiating the tenant's stock delivery window.
• D. The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.

Which of the following accurately describes a landlord's commercial property insurance coverage?

• A. A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
• B. A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
• C. A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.
• D. A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.

An agreement of purchase and sale for an industrial building is accepted conditional on financing with the expiry date of May 14. On May 11, the bank informs the buyer the mortgage cannot be approved until May
17. The salesperson for the buyer then prepares an amendment to the agreement of purchase and sale for the extension of the condition. Which of the following is NOT correct?

• A. The buyer can still waive the condition before the expiry date if the seller refuses to sign the amendment, provided there is a waiver provision in the condition.
• B. To play it safe, the salesperson should amend the condition with May 18 as the expiry date.
• C. The salesperson should prepare the amendment with midnight, May 17 as the irrevocable time.
• D. The buyer can use the same amendment to ask for a change of the closing date.

A salesperson has a buyer client in the metal fabrication industry, which requires outdoor storage and involves substantial noise and smells. The salesperson sees a listing that says "24,000-square-foot light industrial property, multi-uses permitted." Is this a suitable property for their client? Why or why not?

• A. Yes, the property is suitable since the client is already in the metal fabrication business, and does not need to get any permits from the municipality prior to moving in and using the property.
• B. Yes, the property will be suitable if the client states they will change the zoning to allow their type and classification of business to operate at this location.
• C. No, the property is not suitable, as the client's business type and classification require heavy industrial zoning.
• D. Yes, the property is suitable, as the listing says the property is light industrial and multi-uses are permitted.

A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

• A. The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.
• B. In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
• C. The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
• D. Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.